CASES
Wilmington Trust Corporation (D. Delaware)
Class Period: Apr 18, 2008 to Nov 1, 2010
Lead Plaintiff Deadline: Jan 18, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Wilmington Trust Corporation (D. Delaware) (WL) ("Wilmington" or the "Company") on behalf of all securities purchasers from October 23, 2009 through November 1, 2010, inclusive ("Class Period"), in the United States District Court of Delaware.
The complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding the Wilmington's business and financial results. Specifically, defendants failed to disclose: (i) that the Company improperly delayed recording loan charge offs; (ii) that the Company's reported income and asset quality were materially overstated due to defendants' material understatement of Wilmington's loan loss provisions, loan loss reserves and income tax expense; (iii) that as a result of the foregoing, the Company's financial statements were materially false and misleading and not fairly presented in conformity with Generally Accepted Accounting Principles; (iv) that the Company's internal and disclosure controls were materially deficient; (v) that the Company was engaged in unsafe and/or unsound banking practices; and (vi) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On November 1, 2010, Wilmington announced it lost $365.3 million in the third quarter of 2010, the quarter ended September 30, 2010, primarily as a result of a $281.5 million charge to "reflect the increased risk in our loan portfolio" and a $100.7 million income tax charge resulting from the Company's continued losses and the uncertainty about the reliability of Wilmington's deferred tax asset due to the poor credit quality of it loan portfolio.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.